Inside Asian Gaming

INSIDE ASIAN GAMING | April 2011 46 Briefs International Briefs Steve Wynn joins Barron’s list of ‘World’s Best CEOs’ Steve Wynn, Chairman & CEO of Wynn Resorts and Wynn Macau Limited, has been added to Barron’s annual roster of the ‘World’s Best CEOs’. Bruce Rockowitz, CEO of Li & Fung and an independent non-executive Director of Wynn Macau, is again listed among the 30 top CEOs on the Barron’s list. According to Barron’s, Steve Wynn was chosen because of his success in Asia and is “well-positioned for the years ahead.” In 2002, he obtained a casino licence in Macau, the world’s biggest casino jurisdiction by gaming revenue. Barron’s also recognises Steve Wynn’s success at “bringing some Vegas verve to Macau since he became CEO ofWynn Resorts in 2002.” “There are some CEOs who excel at making money for themselves and others who have a knack for enriching fellow shareholders,” wrote Andrew Bary, a Barron’s columnist. “Steve Wynn is an investor’s friend.” Medvedev moves to toughen gambling law Russian President Dmitry Medvedev has proposed changes to tighten up the law on illegal gambling, after senior regional prosecutors were accused of protecting underground casinos. InFebruary,investigatorssuspended Moscow region prosecutor Alexander Mokhov and his deputy, Alexander Ignatenko, over allegations that they “hushed up” massive illegal gambling operations. Several others in the department were also targeted in a major corruption probe. The proposals suggest making it a criminal offence to organise and manage illegal gambling operations—an activity currently classified as“running an unregistered enterprise,”the Kremlin said on 2nd April. The proposed changes are now subject to ratification by the legislature. The 2009 law confining gambling to four remote Russian regions has caused the number of illegal casinos to skyrocket, and created greater opportunities for corruption. In Moscow alone, police have shut nearly 400 illegal casinos over the past few weeks, but say that hundreds more still operate. Fewer people going to Vegas primarily to gamble According to the annual visitor profile commissioned by the Las Vegas Convention and Visitors Authority, the number of people who visited Las Vegas primarily to gamble dropped to 9% in 2010, from 13% in 2009. At the same time, the average wagering budget of US$466.20 marked a 3% decline from 2009 and 28% fall from 2006. The survey is based on 3,700 responses. Meanwhile, underlying the fragility of the recovery of the gaming industry some believed had begun last year, Nevada gaming revenues fell just under 1% year-on-year in January, while revenues on the Las Vegas Strip fell 2.5%, even with the busy New Year’s Eve holiday and presence of several large conventions that helped boost visitor volume 8.6%. “Despite commentary from Strip operators indicating healthy (revenue per available room) growth driven by strong convention visitation, January’s core table games and slot volume decline underscores the convention segment’s lower propensity to gamble,” Susquehanna International Group gaming analyst Rachael Rothman told investors. Statewide, casinos collected US$877.4 million from gamblers in January 2011, compared with $883.3 million in January 2010. The figures marked the fourth straight January that gaming revenues had declined from the previous year. Gaming revenues have also declined in three straight months starting in November. On the Strip, casinos collected US$482.7 million during the month, down from $495 million collected a year ago. High-end baccarat play, the primary reason large Strip casinos had been able to weather the state’s prolonged economic downfall, had a part in January’s decline. Revenues frombaccarat were US$64.8 million—a 39.7% decline. The amount wagered on the game was $591 million, a drop of 29.2%. The hold percentage was 11% versus almost 13% a year ago. Nevada Gaming Control Board senior research analyst Michael Lawton said baccarat was only part of the story. Table game volume, which was down 13% statewide and 15.1% on the Strip, saw declines in all games, including blackjack, roulette and craps. Slot machine wagering was also off, down 2.1% statewide and 2.5% on the Strip. Nevada Gaming Commission approves Caesars, 888 relationship The Nevada Gaming Commission last month approved the first ever business relationship between a state-licensed gaming company and a foreign-based Internet gaming operator. According to an article in the Las Vegas Review-Journal , Top man—SteveWynn Dmitry Medvedev Not so keen on the slots—the new Vegas visitor demographic